File #: 160703    Version: 0 Name:
Type: Resolution Status: ADOPTED
File created: 6/16/2016 In control: CITY COUNCIL
On agenda: Final action: 6/16/2016
Title: Calling for the creation of a Task Force on Retirement Security for Private Sector Employees in Philadelphia.
Sponsors: Councilmember Parker, Council President Clarke, Councilmember Henon, Councilmember Reynolds Brown, Councilmember Greenlee, Councilmember Taubenberger, Councilmember Green, Councilmember Gym, Councilmember Oh, Councilmember Bass, Councilmember Squilla, Councilmember Blackwell, Councilmember Domb, Councilmember Jones, Councilmember Quiñones Sánchez, Councilmember O'Neill
Attachments: 1. Signature16070300.pdf
Calling for the creation of a Task Force on Retirement Security for Private Sector Employees in Philadelphia.

WHEREAS, America's framework for providing retirement security was historically referred to as a "three-legged stool" - Social Security, private pensions, and personal savings - with each leg supposed to carry an important part of the weight of securing workers' retirement; and

WHEREAS, This framework is no longer viable due in large part to the decline in Social Security replacement rates; the increasing lack of access to any sort of retirement savings plan, particularly defined benefit plans; the general inadequacy of individual account plans like 401(k)s; and the fact that Americans are living longer, interest rates are declining, and health care and other living costs are increasing; and

WHEREAS, America's retirement system is in crisis. According to the National Institute on Retirement Security (NIRS), fewer than half of working-age households are on track to accumulate sufficient savings and benefits to maintain their pre-retirement standard of living, and the median retirement account balance for all households ages 25-64 is just $2,500; and

WHEREAS, Inequality is exacerbated by this retirement crisis. NIRS found the typical Black or Latino household has no dedicated retirement savings, and for households of color that do have a retirement savings, the $31,600 mean retirement account balance is less than one-third of the $111,700 of white households; and

WHEREAS, According to a study commissioned by the City Council of Philadelphia and completed by the Schwartz Center for Economic Policy Analysis at The New School for Social Research, the retirement situation in Philadelphia is even worse than that nationwide. The Schwartz Center study found that 20 percent of retirees in Philadelphia are poor, compared with 9 percent nationwide, and 30 percent have incomes between 100 and 200 percent of the federal poverty level, compa...

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